Report suggests gas prices could fall

In fact, a report commissioned by energy secretary Ed Davey has suggested that gas prices may fall by 12 per cent by 2020, irrespective of whether the UK makes the most of its shale energy resources. The findings go against Mr Davey's earlier assertion that household bills would continue to increase regardless.

Navigant's report looked at a number of potential scenarios, some which would see the price of gas rise, and some which would see it fall significantly, The Telegraph said.

The report said: "In two out of three of our scenarios we predict a fall in prices from current levels quite soon."

Speaking this week, prime minister David Cameron strongly backed the idea of exploiting shale gas, despite concerns over the way in which it's retrieved from the ground – known as fracking. The process sees sand, chemicals and water blasted into the earth to release the gas.

Mr Cameron said Europe had slipped well behind the US.

"The figures are actually quite frightening," he said. "Europe as a whole has 75 per cent as much unconventional gas as America. So we’ve got less in Europe as America.

"But whereas they are digging 10,000 wells a year, so far in Europe we've dug just 100. So we are way behind, so I'm in favour of fracking, the government is making it easier."